74 Ill. Adm. Code 1100.825
Repayment Procedures
Section 1100.825 Repayment Procedures
a) Loans
shall be repaid within 20 years, except that loans to finance acquisition of brush
trucks shall be repaid within 10 years.
b) For
the purchase of brush trucks by a fire department, the Program shall provide
loans at a 2% rate of simple interest per year if both the brush truck chassis
and the apparatus are built outside of Illinois; a 1% rate of simple interest
per year if either the brush truck chassis or the apparatus is built in
Illinois; or a 0% rate if both the brush truck chassis and the apparatus are
built in Illinois. The applicable interest rate shall be fixed and remain in
effect for the term of the loan.
c) The
rate of interest on loans under the Program, except for brush trucks, will be a
0% fixed interest rate (and remain in effect until the final maturity date of
the loan) unless the applicant has one or more investment grade credit ratings
(i.e., at or above "Baa3" or "BBB-" or the equivalent) from
any nationally recognized municipal credit rating agency. The applicable
interest rate shall be fixed and remain in effect until the final maturity date
of the loan.
d) For applicants
that do not qualify for 0% loans pursuant to subsection (c), the interest rate
shall be determined as follows:
1) Effective
January 1, 2025, the interest rate will be set as of January 1 for
applications received during
such calendar year irrespective of the calendar year when any loan closes and
funds
;
2) The
interest rate will be equivalent to 50% of the mean of the Bond Buyer's 20-Bond
General Obligation Index for the 12 month period that ended September 30 of the
prior calendar year; and
3) The
loans will bear interest on a simple interest basis. The applicable interest
rate shall be fixed and remain in effect until the final maturity date of the
loan.
e) Payments
on the loan (principal and accrued interest, if any) shall be made on an annual
basis in equal installments as provided in the Loan Agreement with the Authority
, subject to the applicable minimum annual amortization
requirement set forth in the Act
. [20 ILCS 3501/825-80(d)] The
Authority shall deposit the payments received into the Fire Truck Revolving
Loan Fund in accordance with the Act, if required by law.
1) Loan
payments shall be due on November 1 of each year, with the initial payment due
based on the loan funding date, as follows:
A) If the
time period between loan funding date and the immediately following November 1
is 180 days or more, the first payment shall be due on November 1 immediately
following the loan funding date; or
B) If the
time period between the loan funding date and the immediately following
November 1 is less than 180 days, the first payment shall be due on the second
November 1.
2) After
the first payment is made, succeeding payments shall be due on each November 1 thereafter
until repaid in full.
3) Payments
shall be made payable to the "Illinois Finance Authority – Fire Truck
Revolving Loan Fund",
with payments
submitted by wire transfer, by electronic funds transfer (automated clearing
house), or by check pursuant to instructions provided in the annual invoice on
each loan.
4) Payments
not received within 15 calendar days after the due date shall be assessed a
penalty of 5% of the payment amount due. Nevertheless, this late payment
penalty shall be waived whenever the postmark date on an envelope used to
submit a payment by check is dated a minimum of five days or more before the
end of the 15 calendar day grace period. Payments remitted via wire transfer
shall not be assessed late payment penalty if the wire transfer payment is
received before the end of the 15-day grace period.
5) A recipient
may prepay all or a portion of the balance due on the loan, without penalty, on
any date, provided that the recipient initiates contact with the Authority to
obtain the total amount of the principal and accrued interest, if any, due on
the repayment date.